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Thursday, July 27, 2006

XM Thud

XM Satellite Radio Holdings (XMSR) is trading down at $10.02 from the $10.36 close yesterday. The company also said they passed the 7 million subscriber mark.

Q2 revenue of approximately $228 million. EPS -$0.87 EPS vs -$0.69e (see items below).

Earnings notes: XM's net loss for the second quarter of 2006 was $229 million compared to a net loss of $147 million during the second quarter of 2005. The net loss for the second quarter of 2006 includes $105 million in de-leveraging and other non-operating charges that were not incurred during the second quarter of 2005. For the second quarter of 2006, the adjusted EBITDA loss (non-GAAP) improved to $46 million versus an adjusted EBITDA loss of $88 million in the second quarter of 2005. The primary differences between net loss and adjusted EBITDA are non-operating amounts and certain operating non-cash charges.

Company Revises Subscriber Guidance for 2006: Based on current marketplace dynamics and regulatory uncertainties concerning 'plug-and-play' radios, XM today also reported a change to its subscriber guidance for 2006, projecting that it will end the year with total subscribers of between 8.2 million and 7.7 million. The company will refine this range at the end of the third quarter when it expects to have a firmer sense of regulatory progress and availability of product for the fourth quarter, as well as retail sales trends. With this revised subscriber guidance, XM still expects to achieve positive cash flow from operations for the fourth quarter 2006 and the full year 2007, although its ability to do so becomes challenging toward the lower end of the subscriber range.

Remember, these guys need to do much more than this to keep shareholders happy.

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